U.S. quantitative tightening is underway!
The amount of U.S. Treasury bonds held by the Federal Reserve (FED) has dropped by the largest amount ever (over $40 billion in two weeks). The reduction of the FED's balance sheet is in full swing. Source: Bloomberg, T.Costa
Earnings vs. price
Source: Goldman Sachs
China High Yield property index yield is collapsing
According to UBS, China High Yiled property index yield is collapsing from 70% toward 19% as the housing sector is recovering amid stimulus.
The Federal Reserve's hiking cycle: close to the end?
For the first time in this rate hike cycle, the 2-year U.S. Treasury yield is below the federal funds rate (lower bound). The market seems to be more and more convinced that this rate hike cycle of the US central bank will end soon.
Oil and gas exploration & production companies are by far paying their highest dividend yield in history of the data
Source: Tavi Costa, Bloomberg
London office deals slumped to lowest for 20 years
Almost no one was buying office space in the capital in the final quarter of 2022. Less than £400 million of offices were bought and sold, an 88% drop from the prior quarter, according to CoStar. That’s worse than the decline during the financial crisis or Covid lockdowns. Source: Bloomberg
Global stocks have gained $3.3tn in market cap last week
Global stocks have gained $3.3tn in market cap last week thanks to growing evidence of soft landing/mild recession economic scenario, characterized by cooling inflation, non-recessionary growth, & reduced monetary tightening overhang. All stocks are now worth $103tn, equal to 106% of global GDP. Source: Bloomberg, HolgerZ
The housing boom is finally over in Germany
The housing boom is finally over in Germany as prices for residential properties drop for the first time since GFC in 2009. Europace German House Price Index dropped 0.8% in 2022 w/existing homes down 6%. Source: Bloomberg, HolgerZ
